diff --git a/cmd/zed/agents/zfs_retire.c b/cmd/zed/agents/zfs_retire.c
index 0c6c30f2e86..ba3672a30a7 100644
--- a/cmd/zed/agents/zfs_retire.c
+++ b/cmd/zed/agents/zfs_retire.c
@@ -355,18 +355,30 @@ is_draid_fdomain_failure(fmd_hdl_t *hdl, libzfs_handle_t *zhdl,
  * replacing a failed vdev with the given characteristics.
  *
  * Ordering criteria (most to least significant):
- *  1. Matching rotational is preferred over mismatching.
- *  2. Large enough is preferred over (potentially?) too small.
- *  3. Smaller size is preferred over bigger (best fit).
+ *  1. Distributed spare matching the failed vdev's dRAID is preferred
+ *     most (distributed spares rebuild faster than traditional spares).
+ *     Regular spares (no TOP_GUID) come next.  Non-matching distributed
+ *     spares are tried last, as the kernel will reject them anyway.
+ *  2. Matching rotational is preferred over mismatching.
+ *  3. Large enough is preferred over too small.
+ *  4. Smaller size is preferred over bigger (best fit).
  */
 static boolean_t
 spare_is_preferred(nvlist_t *a, nvlist_t *b, boolean_t have_rotational,
-    uint64_t vdev_rotational, uint64_t vdev_size)
+    uint64_t vdev_rotational, uint64_t vdev_size, uint64_t top_guid)
 {
-	uint64_t a_rotational = 0, b_rotational = 0;
-	uint64_t a_size = 0, b_size = 0;
+	uint64_t a_top = 0, b_top = 0;
+	(void) nvlist_lookup_uint64(a, ZPOOL_CONFIG_TOP_GUID, &a_top);
+	(void) nvlist_lookup_uint64(b, ZPOOL_CONFIG_TOP_GUID, &b_top);
+	int a_pri = (a_top == 0) ? 1 :
+	    (a_top == top_guid || top_guid == 0) ? 2 : 0;
+	int b_pri = (b_top == 0) ? 1 :
+	    (b_top == top_guid || top_guid == 0) ? 2 : 0;
+	if (a_pri != b_pri)
+		return (a_pri > b_pri);
 
 	if (have_rotational) {
+		uint64_t a_rotational = 0, b_rotational = 0;
 		(void) nvlist_lookup_uint64(a, ZPOOL_CONFIG_VDEV_ROTATIONAL,
 		    &a_rotational);
 		(void) nvlist_lookup_uint64(b, ZPOOL_CONFIG_VDEV_ROTATIONAL,
@@ -378,6 +390,7 @@ spare_is_preferred(nvlist_t *a, nvlist_t *b, boolean_t have_rotational,
 
 	vdev_stat_t *vs;
 	unsigned int c;
+	uint64_t a_size = 0, b_size = 0;
 	if (nvlist_lookup_uint64_array(a, ZPOOL_CONFIG_VDEV_STATS,
 	    (uint64_t **)&vs, &c) == 0)
 		a_size = vs->vs_rsize;
@@ -405,7 +418,7 @@ replace_with_spare(fmd_hdl_t *hdl, zpool_handle_t *zhp, nvlist_t *vdev)
 	char *dev_name;
 	zprop_source_t source;
 	int ashift;
-	uint64_t vdev_rotational = 0, vdev_size = 0;
+	uint64_t vdev_rotational = 0, vdev_size = 0, top_guid = 0;
 	boolean_t have_vdev_rotational;
 	vdev_stat_t *vs;
 	unsigned int c;
@@ -430,6 +443,7 @@ replace_with_spare(fmd_hdl_t *hdl, zpool_handle_t *zhp, nvlist_t *vdev)
 	if (nvlist_lookup_uint64_array(vdev, ZPOOL_CONFIG_VDEV_STATS,
 	    (uint64_t **)&vs, &c) == 0)
 		vdev_size = vs->vs_rsize;
+	(void) nvlist_lookup_uint64(vdev, ZPOOL_CONFIG_TOP_GUID, &top_guid);
 
 	/*
 	 * Build a sorted index array over the spares, so that better
@@ -443,7 +457,7 @@ replace_with_spare(fmd_hdl_t *hdl, zpool_handle_t *zhp, nvlist_t *vdev)
 		int j = (int)s - 1;
 		while (j >= 0 && spare_is_preferred(spares[key],
 		    spares[order[j]], have_vdev_rotational, vdev_rotational,
-		    vdev_size)) {
+		    vdev_size, top_guid)) {
 			order[j + 1] = order[j];
 			j--;
 		}
diff --git a/module/zfs/vdev_label.c b/module/zfs/vdev_label.c
index b3042980aad..54d253c1b7d 100644
--- a/module/zfs/vdev_label.c
+++ b/module/zfs/vdev_label.c
@@ -467,6 +467,11 @@ vdev_config_generate(spa_t *spa, vdev_t *vd, boolean_t getstats,
 	if (!(flags & (VDEV_CONFIG_SPARE | VDEV_CONFIG_L2CACHE)))
 		fnvlist_add_uint64(nv, ZPOOL_CONFIG_ID, vd->vdev_id);
 	fnvlist_add_uint64(nv, ZPOOL_CONFIG_GUID, vd->vdev_guid);
+	if (!(flags & (VDEV_CONFIG_SPARE | VDEV_CONFIG_L2CACHE)) &&
+	    vd->vdev_top != NULL) {
+		fnvlist_add_uint64(nv, ZPOOL_CONFIG_TOP_GUID,
+		    vd->vdev_top->vdev_guid);
+	}
 
 	if (vd->vdev_path != NULL)
 		fnvlist_add_string(nv, ZPOOL_CONFIG_PATH, vd->vdev_path);
diff --git a/tests/zfs-tests/tests/functional/fault/auto_spare_multiple.ksh b/tests/zfs-tests/tests/functional/fault/auto_spare_multiple.ksh
index 023f5b58a6e..529a6a8c3fe 100755
--- a/tests/zfs-tests/tests/functional/fault/auto_spare_multiple.ksh
+++ b/tests/zfs-tests/tests/functional/fault/auto_spare_multiple.ksh
@@ -84,8 +84,8 @@ for type in "mirror" "raidz" "raidz2" "raidz3" "draid2:1s"; do
 		log_must zpool create -f $TESTPOOL $type $SAFE_DEV1 \
 		    $SAFE_DEV2 $FAULT_DEV1 $FAULT_DEV2 $SAFE_DEV3 $SAFE_DEV4 \
 		    spare $SPARE_DEV1
-		SPARE1=$SPARE_DEV1
-		SPARE2="draid2-0-0"
+		SPARE1="draid2-0-0"
+		SPARE2=$SPARE_DEV1
 	elif [ "$type" = "mirror" ]; then
 		# 1. Create a 3-way mirror pool with two hot spares
 		truncate -s $MINVDEVSIZE $DATA_DEVS $SPARE_DEVS
@@ -167,8 +167,8 @@ for type in "mirror" "raidz2" "raidz3" "draid2:1s"; do
 		log_must zpool create -f $TESTPOOL $type $SAFE_DEV1 \
 		    $SAFE_DEV2 $FAULT_DEV1 $FAULT_DEV2 $SAFE_DEV3 $SAFE_DEV4 \
 		    spare $SPARE_DEV1
-		SPARE1=$SPARE_DEV1
-		SPARE2="draid2-0-0"
+		SPARE1="draid2-0-0"
+		SPARE2=$SPARE_DEV1
 	elif [ "$type" = "mirror" ]; then
 		# 1. Create a 3-way mirror pool with two hot spares
 		truncate -s $MINVDEVSIZE $DATA_DEVS $SPARE_DEVS